Indian equity markets opened trading on Monday on a muted note, with both benchmarks indicating weakness in the pre-open session amid global uncertainty and persistent concerns around artificial intelligence-led disruptions.
The BSE Sensex rang the opening bell near 82,300, tanking more than 300 points, while the NSE Nifty50 opened the session around 25,430, slipping nearly 50 points, around 9:15 AM.
The Sensex touched 82,480.40, down 146.36 points or 0.18 per cent, while the Nifty stood at 25,423.60, lower by 47.50 points or 0.19 per cent, during the pre-open hour, signalling a weak day ahead for investors.
Global Cues And AI Concerns To Set The Tone
Analysts expect macroeconomic data releases, geopolitical developments and ongoing anxiety over AI-driven disruption to influence market direction in the near term.
Although tariff-related concerns have eased somewhat and the domestic earnings season is nearing completion with mixed results, investor focus is likely to remain centred on global triggers. Key among them are US labour market data and evolving expectations regarding the Federal Reserve’s interest rate trajectory.
“Overall sentiment is likely to remain cautious as investors monitor global AI-driven disruptions and geopolitical risks, while improved valuations and constructive GDP forecasts may help sustain FII inflows,” said Vinod Nair, Head of Research at Geojit Investments Ltd.
Weekly Losses Reflect Fragile Sentiment
The broader market enters the week after closing the previous one on a weak footing. On a weekly basis, the 30-share Sensex declined 953.64 points, or 1.14 per cent, while the Nifty fell 222.6 points, or 0.86 per cent.
Both indices ended the week in negative territory, weighed down by a global technology sell-off and mounting concerns that artificial intelligence could disrupt traditional business models, particularly in the IT sector.
The sharp repricing in technology counters contributed to overall volatility, even as earlier optimism around favourable India-US trade developments and renewed foreign institutional investor (FII) inflows had supported sentiment.
Sector Rotation And Range-Bound Expectations
With IT and metal stocks facing persistent structural and external headwinds, analysts believe leadership may gradually rotate towards domestically focused sectors such as banking, automobiles and select consumption-driven segments.
However, broader indices are expected to remain range-bound until clearer macroeconomic and policy signals emerge, Nair noted.
Ajit Mishra, SVP – Research at Religare Broking Ltd, said investors will closely track Wholesale Price Index (WPI) inflation data and balance of trade figures for insights into price pressures and external sector trends.
High-frequency indicators scheduled for release include HSBC flash PMI readings for manufacturing, services and composite, along with bank loan growth and foreign exchange reserves data. These metrics will be assessed for confirmation of growth momentum amid continued global volatility.
Fed Outlook And FII Flows In Focus
Stronger-than-expected US jobs data has tempered hopes of near-term interest rate cuts by the Federal Reserve, placing pressure on global risk assets. Investors will also watch the minutes of the Federal Open Market Committee (FOMC), due later this week, for further clarity on the US central bank’s policy outlook.
Foreign investor activity and currency movements are also expected to remain key drivers of sentiment. The rupee consolidated within a narrow band last week and settled 5 paise lower at 90.66 against the US dollar on Friday.
Geopolitical tensions have added another layer of uncertainty, leading to broader sectoral volatility and intermittent profit-booking.
